The Association of Nigeria Tyre Marketers has called on the Federal Government to revive the local tyre manufacturing companies to aid the new automotive policy.

The association’s President, Alhaji Issa Akanbi, said in Lagos that there was need to assist the industry through finance or large rubber plantations

Akanbi said the new automotive policy was a welcome development that required all supportive sectors to be vibrant. He said that if the policy entailed the establishment of local vehicle manufacturing plants, the government’s support in the area of improved tyre production technology is required.

He noted that as a measure to revive manufacturing firms, importation of key components for tyre production should be duty-free and zero Value Added Tax (VAT).

“There should be zero VAT and duty on imported key components should be waived. This is especially for machines and other equipment as globally adopted for the growth of an industry. Government should introduce energy-efficient measures and ensure the equipment to be used is based on modern technology,” he said.

The association had opposed the government’s five per cent import duty concession on imported tyres by local manufacturers. Akanbi said the protest was to notify the government that there was no tyre manufacturing company in Nigeria at present.

He said that the concession would only encourage monopoly by those who have the privilege to import and a disadvantage to others who could not.

“At present, there is no company producing tyres in the country as all of them have since relocated to neighbouring countries. The privilege status of importation at a concessionary duty rate of five per cent will only encourage extreme monopoly to the disadvantage of other stakeholders in the trye value-chain.

“This will also encourage massive importation by the privileged few who are close to government under the pretence that they operate tyre manufacturing plants that do not exist,” Akanbi said.